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English definition of “rights issue”

rights issue

noun [C]     STOCK MARKET
an occasion when a company offers new shares at a lower price than usual to its existing shareholders, or the number of shares made available in this way: The acquisition will neither dilute shareholders' earnings nor prompt a rights issue. Much of the rights issue proceeds were used to plug a financial black hole.
(Definition of rights issue noun from the Cambridge Business English Dictionary © Cambridge University Press)
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